Chairperson, hon Minister, Deputy Minister and all hon members in the House, today we stand here to debate the budget for this important component of our country's economic cluster but, sadly, we find ourselves in almost exactly the same, if not worse, condition than we were the last time we came together.
We were promised that by now our country would be out of its energy crisis due to the fact that both the Kusile and Medupi Power Stations would, at the very least, be partially up and running. Alas, here we stand, with rolling blackouts a way of life for thousands of South Africans and the economy taking yet another beating as a result of Eskom's poor capacity. In a country so desperate for job creation, this situation is untenable. Rolling blackouts have a major impact on our economy and will inevitably result in job losses. With our economy already growing so slow and facing many internal and external pressures, these blackouts should rightly be considered a national crisis. The Medupi project was initially planned to be operational by the end of 2012, but has since had its commission deadline shifted many times, with the latest extension scheduling completion for the end of 2014.
Last year, I made a request for access to the records of a public body, through the application of the Promotion of Access to Information Act, to gain access to the Medupi contracts and also those of all subcontractors. I unfortunately stand here today without these contracts. Both I and the population of the country remain completely in the dark - if you will pardon the pun - regarding penalty clauses, timeframes and the awarding of tenders.
In its response to my Promotion of Access to Information Act application, Eskom essentially refused to hand over contracts relating to one of the worst offenders behind the delays at Medupi: Hitachi Power Africa and its former shareholder - surprise, surprise - Chancellor House, the ANC's investment wing. [Interjections.]
This is unacceptable, even more so because one of the primary offenders at the Medupi project is Hitachi Power Africa. Indeed, we are still no closer to finding out the truth about the ANC's investment wing, Chancellor House, and their involvement in the awarding of this multibillion-rand contract at the Medupi project to Hitachi Power Africa.
What we do know is this: There is no smoke without fire. The smoke here is so thick that one can almost no longer see the road to Lephalale. I get the distinct feeling that officials at Eskom are hoping that my pursuit of these contracts will emulate the deadline schedule for the Medupi station and that eventually I will give up. Allow me to assure this House that I have absolutely no intention of letting go of this issue and will relentlessly continue to fight for access to those contracts. [Interjections.] [Applause.]
We have a good portfolio committee. We are South Africans, working for South Africans. I was most pleased when the Portfolio Committee on Public Enterprises included in its recommendations that these contracts must be produced for the portfolio committee to scrutinise. How would it be possible for us as parliamentarians to be able to honestly say that we had executed our duty of oversight if we remain unable to see these contracts?
Since 2008, the DA has called for policy and legislative amendments to dismantle Eskom's monopoly as the sole purchaser of electricity in South Africa. This would allow independent power producers, IPPs, to feed into the national grid or to feed power directly to consumers. It would thus reduce Eskom's need for capacity generation. This Bill has been blocked from being processed in Parliament by various Ministers and by the President himself. The Independent System and Market Operator Bill would remove the operation of the electricity grid from Eskom and locate it in new independent entities.
The national carrier, SA Airways, remains a huge worry. The airline continues to be shrouded in controversy and teeters on the edge of financial collapse, only to be saved over and over again by emptying South African coffers and relying on government bailouts.
At this point, allow me to state something very clearly so that there can be absolutely no confusion: South Africa produces some of the finest pilots in the world. The pilots at SA Airways and at SA Express are among the top in the world - the top in the world! Any country and any airline would be proud to have them. The problem with the airline is not the staff and certainly not the pilots. It is its top-heavy, inexperienced management that lets the airline down.
The aviation industry is one of the most fickle and at its helm it requires people who understand aviation, understand international best practice and, most importantly, understand that it is an archaic and romantic notion at best to think that every time an SA Airways plane takes off, our national flag flies. This is not an issue of patriotism; it is an issue of giving the best to South Africa. We want competition. We want to be able to choose between various airlines that offer us competitive prices and great service. [Interjections.] How can this be possible when government simply continues to fund a failing airline? Ticket prices increase, yet, at the same time, so do the annual losses of the airline. We are still awaiting full details of the new turnaround strategy. All we have received thus far is a very brief executive summary.
Again, I emphasise that we want to execute our oversight role. It is imperative that we know what the airline is up against. What we do know for sure is this: The airline runs too many nonprofitable routes due to political pressure, while it does not service its own citizens due to cost- cutting measures being taken in the wrong places.
It is appalling that South Africans cannot catch an SA Airways flight from Cape Town to Durban. [Interjections.] Let us be completely honest: I do not think that anyone from the Eastern Cape is going to be writing an "I love you" letter to the carrier for the meagre amount of flights available for them to choose from. We are an international tourist destination and we must start acting like one!
Having managed to rack up operating losses worth R1,2 billion this year alone, with approximately R16 billion in taxpayers' money wasted in the past 20 years, this is a futile attempt to prop up SA Airways. No money should be extended to this enterprise and, Minister, I implore you to look at privatising SA Airways. [Interjections.] [Applause.]
This company provides no value for money for the South African taxpayer and is proving to be nothing more than a drain on our budget. Minister, let us as South Africans now stand together - as you rightly said, no party politics - and say, enough is enough! South Africa deserves better and South Africa can indeed have better. I thank you. [Applause.]